The primary purpose of economic activity in the US is to maximize total wealth, by benefit consumers, increase “the size of the pie”. Secondly, is the importance of wealth distribution. In a market-oriented system of capitalism businesses are treated as commodities, they are freely traded without real regard to social effects. Thus, corporate responsibility is low in the U.S. This is “shareholder capitalism”, where firm

From the origins of feudalism, European nations learned to operate in the interests of society. The Mercantilism period encouraged businesses to serve state interests, cultivating an individualist approach. During the late nineteenth century Germany’s Chancellor, Otto von Bismark, began an initial movement towards the modern welfare state. Germany became a “corporatist” society, provided public welfare for every citizen, “maximize the pie”. In the U.S., Adam Smith’s economic theory of laissez-faire was adopted, aiming to benefit the entire society by encouraging people to act in their own best interests, “the size of the pie.” Smith’s theory aspired to allocate resources efficiently, which unimpeded one’s ability to earn profits and increased the quality of goods. In the U.S., The Visible Hand gave rise to managerial capitalism, challenging the Invisible Hand of prior market mechanisms. This emphasized the importance of managers.

The primary purpose of economic activity in Germany is to endeavor the balance of market efficiencies and social concerns. Germany seeks to “maximize the pie”, permitting markets to function freely, but placing value on employee and social welfare. Through a “corporatist” sys

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